Maharashtra, India's wealthiest state by economic output, has begun preparations for an initial public offering of its power distribution utility, according to people familiar with the matter. The move would monetize one of the state's largest infrastructure assets and mark a significant step in India's ongoing push to list state-owned companies.

The power distribution utility serves millions of customers across Mumbai and surrounding regions, operating in India's financial capital and industrial heartland. State-run utility IPOs have gained momentum as the federal government encourages capital market participation in infrastructure development to raise funds for expansion and modernization.

If the IPO proceeds, it would follow a series of high-profile listings by Indian state-owned entities, including the country's largest insurance company and a major coal producer. Maharashtra's decision reflects a broader trend of Indian states monetizing assets to reduce debt while offering investors exposure to the country's growing power sector.